Highlights of Budget for 2014-15 -------------------------------------- * To hike FDI in defence to 49% * NDA policy to encourage FDI in selective sectors * Domestic defence mfg sector at nascent stage * FDI in selected sectors to help larger interest of country * Plan to enlarge scope of income tax settlement commission * To provide certainty in tax laws * Propose changes in transfer pricing rules * Propose to strengthen authority for advance ruling in tax * High level panel to interact with industry on indirect tax * Clarification on tax issues to be given * Plan law, administrative changes to reduce tax disputes * Resident tax payer to get facility of advance tax ruling * Propose changes to resolve ongoing direct tax disputes * Aim stable, predictable investor-friendly tax regime * Tax demands worth 4 trln rupee currently under litigation * GST to result in higher tax mop-up for Centre, states * Committed to stable, practical tax regime * All cases of retrospective tax to be studied by CBDT panel * GST to streamline tax administration * Tax regime to be investor friendly * Assure states govt to be more than fair on GST * Wont ordinarily bring in tax changes retrospectively * Govts right for retrospective legislation unquestionable * Retrospective taxes should be done with caution * Hope to bring final solution to GST issue in FY15 * Aim to make food subsidy better directed, more inclusive * Hope to have final solution on GST this yr * GST debate must come to an end * To review food, fuel subsidy * Food, oil subsidy to be more targeted * Committed to minimum govt, maximum governance * New urea policy will be formulated * To constitute expenditure mgmt panel * No option but to undertake bold steps to enhance econ * Time has come to revive efficiency of govt spend * Todays measures are directional * Must address problem of black money * Still not out of the woods on inflation * Seen gradual moderation in WPI inflation recently * Aim 3.0% fiscal gap in FY17 * Aim 3.6% fiscal gap in FY16 * Accepted FY15 4.1% fiscal deficit target as a challenge * Reduction in fiscal deficit achieved by spending cuts * Jaitley: Aim of 4.1% of GDP fisc gap indeed daunting * Need fisc prudence that will lead to fisc consolidation * Jaitley: To continue to remain watchful on CAD front * Must improve tax-GDP ratio * Need to revive growth in infra, manufacturing sectors * Non-tax revenue must be increased * Must reduce wasteful expenditure * Urgent need to generate more resources for econ * Tax GDP ratio must be improved * Steps today start of macro economic stabilisation * Fisc prudence of paramount importance * Cannot spend beyond our needs * Cant leave behind legacy of debt * Should we be victims of mere populism? * Fiscal prudence of paramount importance * Not wise to expect too much from new 45-day govt * Task before me today is very challenging * Need to revive growth in mfg, infra sectors * Econ situation presents a grave challenge * Wont leave any stone unturned for vibrant, strong India * Not wise to expect anything major in first budget * Higher growth is a sine qua non * Have to ensure anti-poverty plans are well aimed * Cant be oblivious that large population below poverty line * Budget is the most comprehensive action plan Basic tax exemption limit raised to Rs 2.5 lakh, and Rs 3 lakh for senior citizens (60-plus). No changes made incorporate or other direct taxes. Limits under section 80C raised to Rs 1.5 lakh -as indicated in raising the PPF limit to Rs1.5 lakh. EMI exemption for self-occupied property raised to Rs 2 lakh. Companies to get 15 percent investmentallowance for fresh investments above Rs 25 crore. Foreign institutional investors to get tax-breaks to entice them to move back from Mauritius. Their incomes will be treated as capital gains - which is 15 percent for short-term gains and zero tax for long-term gains. Non deduction of TDS disallowance reduced from 100% of expenditure to 30% of expenditure
Posted on: Thu, 10 Jul 2014 08:32:26 +0000
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